The primary intent behind ACA21 is to raise additional revenue to support California’s Young Child Tax Credit, which would now apply to children up to 18 years old. The revenue generated from the proposed sugar tax on candy will specifically be allocated to counteract the financial implications of raising the qualifying age for the tax credit, thereby enhancing support for low-income families. This could potentially alleviate some of the financial strain placed on the General Fund and help address increases in childhood poverty following the cessation of expanded federal child tax credits.
Summary
ACA21, introduced by Assembly Member Jackson on March 13, 2024, proposes an amendment to the California Constitution allowing the state to levy or collect a sales or use tax on candy. The bill defines candy as a preparation of sugar, honey, or other sweeteners combined with chocolate, fruits, nuts, or flavorings. This tax represents a significant change in the existing law, which generally prohibits the state from taxing food products for human consumption, with very limited exceptions.
Contention
A notable point of contention surrounding ACA21 is the debate over the merits and drawbacks of taxing candy, which opponents argue could disproportionately affect low-income families while supporters emphasize the urgency of combating childhood poverty in the state. Critics also highlight the potential public health implications of making candy more expensive, while proponents assert that the targeted use of the tax revenue will provide essential benefits to vulnerable populations. Thus, the bill raises crucial questions about balancing fiscal needs with socio-economic equality.